She can likely make it appear lower by classifying:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cathy Company's accountant is not an ethical person. She manipulates net income to make it appear
higher or lower depending on the circumstances. She can likely make it appear lower by classifying:
assembly-line workers' wages incurred in the factory as direct materials used in the factory.
assembly-line workers' wages incurred in the factory as salespersons' wages incurred in the sales offices.
salespersons' wages incurred in the sales offices as insurance cost incurred on the sales offices.
Osalespersons' wages incurred in the sales offices as assembly-line workers' wages incurred in the factory.
Transcribed Image Text:Cathy Company's accountant is not an ethical person. She manipulates net income to make it appear higher or lower depending on the circumstances. She can likely make it appear lower by classifying: assembly-line workers' wages incurred in the factory as direct materials used in the factory. assembly-line workers' wages incurred in the factory as salespersons' wages incurred in the sales offices. salespersons' wages incurred in the sales offices as insurance cost incurred on the sales offices. Osalespersons' wages incurred in the sales offices as assembly-line workers' wages incurred in the factory.
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